Annual Report - QuamIR

Notes to the Consolidated Financial Statements (Continued)
2 Summary of significant accounting policies (Continued)
2.26 Employee benefits
(a)
Employee leave entitlements
Employee entitlements to annual leave and long service
leave are recognised when they accrue to employees. A
provision is made for the estimated liability for annual leave
and long service leave as a result of services rendered
by employees up to the balance sheet date. Employee
entitlements to sick leave and maternity leave are not
recognised until the time of leave.
2
2.26
(a)
(b)
Defined contribution plans
The Group uses a mandatory provident fund scheme
(“MPF”) and employee pension schemes established by
municipal government in the People’s Republic of China
(“PRC”) for the eligible employees in Hong Kong and the
PRC respectively.
(b)
The Group’s and the employees’ contributions to the MPF
comply with the related statutory requirements. The Group
has no further payments obligations once the contributions
have been paid. The Group’s contributions to the MPF are
expensed as incurred and are not reduced by contributions
forfeited by those employees who leave MPF prior to
vesting fully in the contributions. Prepaid contributions are
recognised as an asset to the extent that a cash refund or
a reduction in the future payments is available. The assets
of MPF are held separately from those of the Group in
independently administered funds.
The Group’s contribution to the employee pension
schemes in the PRC is at a percentage in compliance with
the requirements of respective municipal governments.
(c)
Termination benefits
Termination benefits are payable when employment is
terminated by the group before the normal retirement date,
or whenever an employee accepts voluntary redundancy
in exchange for these benefits. The group recognises
termination benefits when it is demonstrably committed
to a termination when the entity has a detailed formal
plan to terminate the employment of current employees
without possibility of withdrawal. In the case of an offer
made to encourage voluntary redundancy, the termination
benefits are measured based on the number of employees
expected to accept the offer. Benefits falling due more
than twelve months after the end of the reporting period
are discounted to their present value.
(c)
104 HKC (Holdings) Limited • Annual Report 2011